Suppose that an Australian MNC wants to set up a subsidiary in Japan with an initial investment of AU$300m, equivalent to JPY28.6bn (at the current exchange rate). The company wants to use debt financing for this project but its unlikely that it can obtain a JPY loan or issue JPY-denominated bonds in Japan. Thus, it has to source this debt in AUD in Australia but will use the subsidiarys revenue to pay off the debt. To reduce currency risk exposure, the company considers a matching strategy which can be achieved by using a currency swap or a parallel loan. Describe how the company can do so via these two channels. Are there any other risks to the company when using either of these channels?